As China’s first Global Fresh Food Summit F20 was held in Hangzhou on May 11, the potential of China’s fresh food market began to accelerate release. The world’s top fresh enterprises are on how to build a platform to promote global giant resource sharing, with the vision of globalization and standards to promote the standardization of domestic fresh industry, scale, brand and professional industry pain began to discuss. The conference is held both for foreign or domestic fresh industry, are new opportunities and new growth points.
Inflection point appears to take the lead
The wheels of history roll in, like the Internet and other industries, this conference is more like a signal that the fresh food industry is about to enter the global.
The reason why the first global summit was held in China mainly stems from the rapid development of China’s fresh market. China Business Industry Research Institute released “2018-2023 China fresh electricity market size and development prospects analysis report” data shows that in recent years, China’s fresh industry surging growth, in 2013 fresh electricity trading volume of 12.7 billion yuan, in 2014 doubled to 27.5 billion yuan, in 2016 trading volume is 87.1 billion yuan, With a year-on-year growth of 75.28%, the market size is expected to reach 195 billion yuan by 2018.
For profit-seeking capitalists, expanding domestic have a fatal attraction for the fresh market, on the domestic market can produce economic benefits, this big cake of the world’s top raw companies began focused attention on the dinner table in China, how to better win the Chinese market is the main purpose of these top enterprises to participate in the meeting.
Although we know that the influx of foreign enterprises will intensify the competition in the domestic fresh industry, but from the perspective of domestic fresh enterprises, competition has become a common form in the industry, even without the participation of foreign enterprises, they still need to fight with domestic enterprises. And this time through the introduction of foreign enterprises, a stir up the domestic fresh market this muddy water, so that they can “fish in troubled waters”. Secondly, it can be regarded as a breakthrough in the foreign market. Third, it is helpful to learn more advanced technology and experience. After all, the construction of the domestic fresh market is still not perfect. Although it has made great progress, it is still far from the world’s advanced level.
In the face of the upcoming outbreak of Chinese fresh market, to master a little more market share means an increase in the right to speak, and the fresh giant occupying a large market share will undoubtedly be divided into a bigger cake. In such a context, domestic fresh enterprises began to vigorously cultivate the fresh market, for the market pattern is uncertain at the time to increase their own strength, for the future of the market pattern of the war to accumulate a strength. The emergence of fresh market, such fluctuations naturally without the help of Ali, as one of the industry’s giants, with Hema fresh sheng occupied part of the fresh market ali, of course, to participate in a foot. But with the current state of the market, it will not be easy for Alibaba to expand its territory. Based on strategic considerations, Tmall’s Miaoxiansheng has become an important focus of Alibaba.
Ali’s attempt to turn miaosheng into a weapon is intended to supplement the online fresh food market. Alibaba has a large share of the fresh food market, but much of the credit actually goes to its Hema division. Although it started with e-commerce, the core of Alibaba’s e-commerce business is mainly concentrated in the clothing section. Compared with other sections, the development status of the fresh food section of Alibaba online is not particularly good. On the contrary, in the fresh food market, although jd’s offline development is not as good as Alibaba’s Hema Xiansheng, it is slightly better than Alibaba’s online development. Jingdong is a weapon of destruction for Tencent to fight against Alibaba. Of course, Alibaba will not allow the development of Jingdong fresh to give Tencent more power. In this situation, Ali began to layout the online market without stopping.
Ali high-speed from a series of strategic investment moves, around the consumer demand for a full range of online fresh ecosystem is shaping. First, tmall fresh, a daily fresh food market for the public, has moderate prices, convenient packaging and mainly convenience and efficiency. Secondly, Taoxiang Sweet, which mainly supplies high-quality agricultural products directly from the origin of domestic products, serves consumer groups that value product sources more. Finally, it is positioned in the middle and high-end market, mainly with imported explosive miaoxiansheng. Through the creation of three segments, and then business integration, Ali will create the most complete and mature ecological circle covering the current fresh food e-commerce model on the market, this ecological circle will also become the flow gathering place of Ali.
Under the trend of globalization, Ali must have an external interface if it wants to connect with foreign markets. From the positioning of the three segments, Miaoxiansheng is undoubtedly the most suitable key object for polishing.
The day after tomorrow, it is difficult to take responsibility
As the key object of polishing, the late development of miaoxiansheng seems to be a little off.
In 2013, Ali launched miaoxiansheng, and positioned it as a global high-end imported fresh platform, after a few years, Miaoxiansheng is indeed in the direction of imported fresh industry chain development. For example, we only import fresh produce, deeply cultivate the origin of global agricultural products, extend the industrial chain forward to the origin of products, and reach the last kilometer of consumers. As it turns out, such a development strategy is indeed consistent with the positioning of miaoxiansheng. However, as Alibaba began to shift the channel of its fresh food section from online to offline, Miaosheng’s growth began to slow down. Now, as Alibaba has begun to re-establish itself as a major development force, the phenomenon of stray cats has gradually emerged.
From the analysis of a series of recent actions of Miaoxiansheng, miaoxiansheng’s development focus is slightly offset. One is a partnership with the Michelin Guide. Another is a partnership with Whirlpool to launch smart refrigerators. From the perspective of the fresh food industry, these two cooperation and the fresh food industry seems to be too big, can promote the development of meow fresh food is still unknown. One thing’s for sure, though, is that meow’s partnership with these two brands can generate enough buzz.
The pain points of a cat’s life become more apparent as the cat runs further and further off the road. Although it claims to cover the whole world, miaoxiansheng is more like a domestic trade production, processing and packaging company. On the one hand, distribution needs the help of third-party logistics enterprises, the quality of fresh products is difficult to guarantee. In terms of logistics, Miaoxian chooses to transport its products through cainiao Wandao, a third-party logistics company, rather than build its own logistics system. The advantage of this is to reduce miaoxian’s expenses in logistics. But working with a third-party logistics company means the platform cannot control the transportation process.
When the domestic cold chain logistics system is not mature, the following situations often occur with the help of third-party logistics. Even if fresh products can be delivered next day, quality is not guaranteed; So-called next-day delivery is mostly targeted at first-tier cities, and the promise of next-day delivery is not available in remote areas. The occurrence of this situation is bound to affect user experience, resulting in the loss of consumers. In addition, the evaluation of consumers is highly subjective, which is very easy to make consumers give up second purchase, resulting in the low re-purchase rate of the platform.
On the other hand, due to cost control, imported fresh prices are slightly more expensive. Due to the limitation of fresh characteristics, fresh products are usually not cheap, especially for imported fresh miaoxiansheng, the cost of procurement is higher than that of domestic fresh platform. After all, the product needs to be imported from abroad, which requires one more step in logistics than others, and the cost will increase accordingly. And once the loss occurs, the cost loss of imported fresh will also be higher than that of domestic fresh. Under such circumstances, imported fresh food platforms like Miaoxiansheng usually charge higher prices to ensure profitability. However, for most families, most of these imported fresh goods belong to the consumption category of luxury goods.
In addition, the cold chain problem has been the biggest barrier to achieving high penetration in the fresh food industry, and Miaosheng is also facing this obstacle. At present, China’s cold chain technical personnel shortage, logistics cold chain enterprises are uneven, and the cold chain development structure is unreasonable, it is difficult to form a standardized and intensive standard cold chain system. Before the cold chain problem can not be solved, it is very difficult for Miaosheng to match Hema xiansheng and become ali’s interface to the international market.
So, how should Miaoxiansheng develop in the future to realize Ali’s intention? Start from the root, solve the pain point at the same time to create their own imported fresh explosive manufacturers.
Use Ali to get back to where we started
The most fundamental competition in fresh industry revolves around consumers and suppliers. The biggest difficulty for Miaoxiansheng is how to increase consumer stickiness and build an efficient standard cold chain system. Once the stickiness of consumption increases, the platform will automatically master the consumer’s acquaintance network, at this time, the platform traffic will automatically expand, and the cold chain problem is the key to all links throughout the whole fresh food industry.
Human beings are strange social animals. Sharing is the most common way of life in this social world. Sharing is most directly reflected in wechat, QQ and other social networks of acquaintances, such as some apps and games that are popular through wechat moments. Generally speaking, circle of friends is one of the important ways to achieve traffic at the lowest cost, and social network is the key to become popular. So how can platforms master consumers’ social networks?
Most of the fresh products that drive consumers to actively contribute to their social networks are those that meet consumers’ demands in terms of price and quality. The material cost of fresh products is actually not very expensive, and the price tag on the market is so high mainly because of the cost loss of fresh products in the circulation process.
The primary urgency to reduce costs is to do a good job in the circulation link, miaoxiansheng undoubtedly has a great advantage in this aspect. Yunxiang is a general under Ali and a leader in the fresh supply chain. Miaoxiansheng can directly link consumers to the origin of fresh food by eliminating many circulation links in the supply chain of Yunxiang. At the same time, it can reach consumers in the fastest way and control the loss of the platform within a certain range.
How to keep the quality while reducing the cost is the core appeal of fresh users, good quality control is the key to the development of Miaoxiansheng. Itself with large flow naturally attract tenants ali platform, in fact, meow fresh raw won’t worry about the channels, on the contrary, meow fresh raw should focus on the control link, set standards, ensure that the occupancy of businesses to strictly abide by, and for a standard substandard merchants shall make severe punishment, to guarantee the quality of fresh products.
Ali, as the leader of new retail, fresh food industry is its first field. Throughout the whole fresh food market, Ali’s advantage is there. If you want to build miaosheng fresh food retail platform, it is enough to use its own resources such as capital, flow, experience and industrial chain reasonably. If Ali can build a good online fresh platform, and the online and offline channels through the connection, then Ali in the future fresh war will occupy the high ground.
Article/Liu Kuang public account, ID: Liukuang110